Taxation for IT Virtual Zone companies
Georgian legislation favours companies involved in the development and sale of IT products.
Companies enjoying IT virtual zone status are exempt from VAT and corporate profit tax and benefit from a minimum 5% tax on the distribution of dividends.
| Taxes in Georgia | Mainland Company | IT Virtual Zone Company |
| VAT | 18% | 0% |
| Corporate Profit Tax | 15% | 0% |
| Tax on Dividend Withdrawal | 5% | 5% |
| Personal Income Tax | 20% | 20% |
Payments
Some possible payment methods
These methods have been tested by us and work for Georgian IT companies.
highlights
Requirements for IT Virtual Zone companies
Company registration
Registration of a new company in Georgia;
Virtual zone company status
An application to obtain virtual zone company status;
Physical presence
Physical presence of office and staff, and actual operations from Georgia is mandatory;
Virtual zone entity
Represent a legal entity carrying out information technology activities that has been assigned the corresponding status;
Information technology
Carrying out the study, support, development, design, production, and information systems, as a result of which software products are produced.
Get in touch
Support
Here’s how we help you
Deal with all the legal stuff
Take care of your company accounting
Take advantage of our various banking solutions
Notes
Important notes on Virtual Zone IT
Proper work plan
A Virtual Zone IT company in Georgia offers tremendous tax incentives. Your company pays only 5% tax on dividends.
However, without a proper working plan, taxes for your company may increase significantly. Services you purchase from abroad can increase your exposure to taxes by up to 33%. To avoid unpleasant surprises all you need is to get a proper working plan in advance.
Proper banking solution
Georgian banks have become more difficult to deal with client transactions not related to Georgia. However, companies are allowed to possess a foreign bank account as well as digital banking solutions. There are two primary issues that need to be resolved simultaneously for an IT virtual zone Georgia company:
- Fast and reliable international transactions in different currencies
- Taxes paid in Georgia
Both issues can be resolved by using a combination of international and local banking services.
